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Updated almost 6 years ago on . Most recent reply

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34
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Patrick Meade
20
Votes |
34
Posts

Seller running into problems with investor

Patrick Meade
Posted

Not sure where to start.. I guess I’ll start by staying this happened in Texas, and my family lives in Colorado. 

 I was transferred to Texas for work on a two year contract leaving behind my family to persue my career with just my wife and my two dogs. We bought a house and I started work, around mid contract I lost my grandmother and a few months later my grandfather and wow, was that tough being so far from home. It wasn’t until my father got sick did I really just want to drop it all to get home. But around the end of my contract I got a contacted via LinkedIn from one of my former bosses asking if I’d like to come back to Colorado he may have a job for me. Over the course of a few months things intensified and things got promising even had an interview and the messages that followed sounded like I was moving back!! 

 I had to sell the house quickly so I could be ready to go should the offer come through so I called an investor. I just wanted what I owed around 15% less than market and he made the offer. We signed a contract with the following contingentcy, “this contract is contingent on confirmed or written notice of sellers job transfer and move to Denver Colorado, if job transfer and move to Denver Colorado is declined seller has the option to terminate contract free of penalty “. We signed the contract January 9th 2018 and we started packing. Well, to say I was let down when I got the news I didn’t get the job would be a HUGE understatement. So feeling defeated I called the investor and apologized and told him the news and he said it’s fine it happens all the time and not to worry he would handle the house part. This was In February 2018. 

 I flew my father to Texas and he did what most dads do, picked me up and showed me what I was doing this for and said work hard and go places! So I bucked down for the next year I worked hard, lots of overtime and just plain busted my butt got a promotion and im set for another this April things are looking really good for me. I love the company I work for and.. Texas has grown on me too! I love it here and as long as I can get home at least once a year I’m doing great. 

 So with the new promotion and the next one right around the corner I decided it’s time to upgrade my home! I listed it and within 2 days got an offer for 2 grand more than asking price!! I was so excited, spent hours looking for my next home and thinking about how much my life would improve, even found a house with a mother n law suite for dad haha!! It was perfect!!!! 

 Then the news from the title company came. I had a cloud on my title.. I asked what needed to be done to move forward and they said not to worry just call the investor he probably just forgot to remove it. I called the title company that opened the title and they said it was still open however no money had ever made it, no escrow either, but escrow wasn’t even in the contract. 

 So I called the investor, I said hey buddy long time, how have you been. He seemed nervous and I was confused as to why. I said hey remember the deal we made? I think you forgot to close something I’m having a hard time with my title now. He said, are you selling it? I said, YES!! got an amazing deal going to look at new houses tonight with my agent. He said, I’m still willing to buy it, I said, well it just went under contract a few days ago just need you to sign some kind of release. He said.. I’m not signing anything you have to sell to me.. or sue me and hung up. I texted him later that evening and asked if he would please just sign the memo or I’d be forced to get an attorney. He replied,  I will release the title when he’s paid $3462.40.. 

 I started looking through all my contracts and got a copy of the thing that was messing with my title and here’s what I noticed. 

 He, is unlicensed, his wife is licensed. They own an llc and run their deals through it. He sets them up she signs the contracts leaving him completely off of them. But the notarized memorandum of contract is signed by him and is notarized by her.. on the contract it says “principal of buyer is a licensed real estate agent “. 

Is this notary fraud? Also, why would he choose to not close the contract after being told I didn’t get the job and wasn’t relocating? Wouldn’t my contingency kick it? Why do I feel this is a fraudulent deal? 

Most Popular Reply

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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
63,038
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42,783
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Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Originally posted by @Shawn Ackerman:

@Patrick Meade This is not so uncommon.  This cloud achieved exactly what it is intended to do.  He knew that you could not sell the property without his knowledge considering you had a binding contract that was not fulfilled.  You may just want to pay what he is requesting or contact an attorney to review your contract and potentially go through litigation.  In his mind, when you were ready to sell, you would contact him and he'd buy the property.  So instead of asking you to contact him when you are ready to sell he clouded the title.  If you need to sell quickly, make an agreement with him, if not seek an attorney's assistance with the matter.  Not sure about the laws in Texas but you could very well end up paying for the attorney and having to pay him all or a portion of what he is requesting to have the cloud lifted.  All the best.  Persist and you will WIN!!!

this is just sick..  contract says is void if he does not get the job.  this a great case study of what not to do with unlicensed wholesalers that claim they solve problems..  this guy has major liability in my mind.. not only Notary fraud.. but clouding title and causing harm to the seller.  but like you said he knows he can try to extort 3500 out of this seller.. this is why Sellers should NEVER sign contracts with wholesalers or allow them to be notarized  you have to notarize to record them..  thats why these slim balls do this.. just for this exact reason. 

So anyone reading this and of course there wont be many since its innocent people that get taken and they are not on BP .  DO NOT notarize any sale contract with anyone.. its not necessary to be enforceable.. but its necessary to record.  Also clearly denote in your contact that this contract is null and void if it is recorded.  Lastly if you dont have an agent then this is when you need to go to an attorney before you sign anything..  this is just so wrong on so many levels... what a scumbag and people wonder why wholesalers have such a bad wrap..  they come on with the HEY we solve problems  its just BS  total BS

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